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Markets

Copper rises on weaker dollar, nickel drops despite supply warning

Published Updated

The dollar was down against a basket of major currencies on Friday, making it cheaper for buyers using other currencies to purchase greenback-denominated metals.

The global nickel market will face grave supply shortages unless key Chinese-led projects in Indonesia come online in a timely manner, analysts said on Thursday.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange had risen 0.2 percent to $6,417.50 a tonne by 0146 GMT, while the most active Shanghai copper contract dropped 0.5 percent to 49,170 yuan ($7,316.53) a tonne.

* London nickel fell 0.6 percent, after declining 1.9 percent in the previous session in its biggest drop in four weeks. Shanghai nickel declined 2.4 percent.

* LME nickel inventory continued to hover around its lowest level since 2013, while on-warrant nickel inventory in warehouses tracked by ShFE stayed around its lowest since 2015.

* Chinese electric car and battery maker BYD Co Ltd said it welcomed joint ventures to secure supply.

* Concerns about global economic slowdown weighed on other metals, with zinc and lead falling on both exchanges.

Copyright Reuters, 2019